Boots could face takeover bid from Walgreens as the US pharmacy giant eyes a move to Britain over tax

American pharmacy giant Walgreens may move to Britain for tax purposes as part of a $100billion (£62.5billion) restructuring that could include the acquisition of Boots.

The plan to switch its tax domicile is an endorsement of Chancellor George Osborne’s controversial low-corporation tax policy and it follows a proposal by the US drugs firm Pfizer to move here for tax purposes as part of its failed attempt to acquire AstraZeneca.

Illinois-based Walgreens, which already owns a 45 per cent stake in Alliance Boots, laid down a timetable in 2012 for a possible acquisition of the whole group.

A takeover bid could be launched before next February, ahead of its original deadline, which ends in August.

The US think-tank Americans for Tax Fairness estimates that the US Treasury could lose $4billion in tax over five years if Walgreens reincorporates its business outside America.

Osborne has made significant changes to the tax system to make it more attractive for foreign firms to relocate here.

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A move to Britain would slash the US giant’s corporate tax rate to 21 per cent from 35 per cent. It would save Walgreens several hundred million dollars each year while at the same time providing a sizeable tax windfall to the Exchequer.

Plans: A takeover bid for Boots could be launched before next February

Boots, based in Nottingham, moved its corporate base in 2008 to tax-friendly Switzerland – another possible location being considered by Walgreens.

Boots was acquired by pharmacy billionaire Stefano Pessina and private equity giants KKR in 2007. In 2012, Walgreens paid $6.7billion to take a 45 per cent stake in Alliance Boots.

Walgreens, which has 6,800 US pharmacies and has been heavily criticised in America for its tax plans, declined to comment on possible locations. But it told The Mail on Sunday it is considering a number of options and ‘will do what is in the best long-term interest of our company and its shareholders’.